Stock Returns

In the next two problems, youll use the information below to calculate Disneys stock dividend yield, capital gains yield, total return, average return and coefficient of variation.

Company / Stock Symbol	Date	Dividend per Share	Price Per Share
Walt Disney Co. DIS	Nov. 2020	0.880	127.46
	Nov. 2019	1.760	150.68
	Nov. 2018	1.680	113.32
	Nov. 2017		101.12

____ 9. Using the data above, calculate the missing information. Then answer the questions that follow.

12 Months Ending Nov.	Dividend Yield, DY	Capital Gains Yield, CGY	Total Annual Return, r
2020
2019	1.6%	33.0%	34.5%
2018	1.7%	12.1%	13.7%
		Average Rate of Return, r
		Standard Deviation, s	24.8%
		Coefficient of Variation, CV

What are the 2020 DY and Annual Return?

a.	DY is 0.6% and the Total Return is 13.7%
b.	DY is 1.6% and the Total Return is 10.5%
c.	DY is 2.6% and the Total Return is 28.0%
d.	DY is 2.6% and the Total Return is 12.3%
e.	DY is 0.6% and the Total Return is -14.8%

____ 10. What are the average rate of return and coefficient of variation?

a.	The average rate of return is 10.9% and the CV is 1.65
b.	The average rate of return is 10.9% and the CV is 0.61
c.	The average rate of return is 11.0% and the CV is 1.88
d.	The average rate of return is 11.1% and the CV is 2.22
e.	The average rate of return is 11.1% and the CV is 0.45

____ 11. The Walt Disney Co. (DIS) stock has a beta of 1.08. What is DIS required rate of return, if T-bills return 0.12% and the return on a total market index fund is 11.09%?

a.	9.3%
b.	12.9%
c.	12.0%
d.	7.1%
e.	6.3%